Apple TV to take on Xbox LIVE?

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An Engadget source has uncovered some intriguing code within the iOS 4.3 beta firmware that hints at a Cupertino based assault on online gaming - courtesy of Apple TV

We're definitely filing this one under "S" for "speculation" and nothing more - but we can't help but be a little excited by the thought of getting our game on using the little black hobby-box.

Within the coding, the clever sleuth found several references to "ATVGames" and "ATVThunder", an indication of a controller setup, leaderboards, game scheduling and an online store front.

Given that Apple TV only has a paltry 8GB of on board storage, any games platform would have to go down the OnLive route, i.e. it would need to rely on streaming - although mini style iPhone and iPad games wouldn't take up too much space.

As we said, take this one with a pinch of salt - but it isn't hard to imagine playing iOS games on your big screen TV via your Apple TV and controlling the action with an iPhone, iPad or iPod touch.